You are here: Home - Mortgages - Buy To Let - News -

Govt to extend mortgage scheme to help ‘second steppers’

0
Written by:
13/03/2013
The Government is planning to extend the NewBuy Guarantee scheme to people buying their second homes in an attempt to free up the logjam in the housing and mortgage markets.

The Government is set to offer “a raft” of measures for homebuyers in the upcoming budget, the Department of Communities and Local Government (DCLG) confimed to Your Money’s sister publication, Mortgage Solutions.

The move reported in a Guardian story today is expected to help those in negative equity or struggling to raise a big enough deposit to buy as ONS figures show homeownership in the UK has plummeted to 65%.

This is the latest government move after housing minister Mark Prisk launched NewBuy part-exchange in January this year, which is currently only available for the first six months of 2013.

The current scheme enables homebuyers to purchase a new-build home with a deposit of 5% of the property value with 20% of the property’s value eventually underwritten by a private sector-government partnership.

A survey by Lloyds TSB earlier this month found 61% of second steppers have been stuck on the property ladder for 12 months and 20% now believe it is harder to move up the ladder than to get on it in the first place.

The pressure is building for some silver bullets from Chancellor George Osborne ahead of the budget to deliver both growth and infrastructural spending to boost employment and solve the housing crisis.

The Liberal Democrat Tory coalition voted down Labour’s motion yesterday to introduce a Mansion tax on all properties over £2m yesterday, despite the fact this was originally a Liveral Democrat proposal.

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week